S.E.C. Chairman owned by hedgies?

I am very disappointed in the actions of the current S.E.C. Chairman and many of my peers would strongly agree. To put in bluntly what the f#$& is he thinking? Two weeks ago his letter to Senator Chris Dodd was made public that he wants to repeal or substantially revise Section 28(e) of the Securities Exchange Act of 1934.

The money management businees is a simple model. Manage assets and charge a fee plus have your clients pay commissions. If the client does not like the results aka performance then he takes his money elsewhere. In 1975 Congress deregulated the brokerage business and now he wants to reregulate the business? Je ne sais pas?
More on this letter when we publish our letter to Senator Dodd where we take Cox on point by point.

Then on Wednesday Cox along with the S.E.C. decides to eliminate the uptick rule?? Totally inane. Two years ago the S.E.C. decided to allow a certain number of stocks to be shorted on a downtick as a case study. Cox and the S.E.C. concluded that the stocks that can be shorted on a downtick have not traded in a irregular manner and therefore the universe should be expanded to all stocks. No kidding as we have yet to see a bear market since 2003!!!

The inmates are now running the asylum. The hedgies can pour gasoline on a fire when the market melts. Before the uptick rule kept markets orderly when everyone wanted to run for the exits. No more. The purpose of a stock market is to raise capital so companies can grow and do so in a liquid environment not to create an environment driven by speculation.

The uptick rule was implemented in 1938 by one of the biggest short sellers on Wall Street during the period of the late 1920s through the 1930s, Joseph P. Kennedy. In 1938, Kennedy was the patriach of the Kennedy clan and became the first Chairman of The S.E.C. He knew the damage that short did to the market in the 1930s. More on this evolving story that on Thursday ONLY the New York Times picked up.

Both of these actions benefit only one group the hedge funds. The big question is who contributed to Cox when he was a Representative to The House? I bet we find Goldman Sachs and Morgan Stanley prominent on the list.